The New Zealand Government is providing US$5 million for a second expansion of Niue's only hotel.
Matavai Resort, Niue Photo: RNZI
The Scenic Matavai Resort had been refurbished and extended six years ago with US$12 million of New Zealand's aid support to Niue.
The New Zealand Foreign Minister Murray McCully says the new development will allow the hotel to accommodate 2,000 more visitors each year, bringing in almost US$700,000 in extra annual revenue for Niue.
He says tourism is the largest contributor to economic growth in Niue and the key to putting the island on a path towards self-sufficiency.
The new expansion will see the development of another 20 rooms plus conference facilities.